Sana: capital gains and sales tax

Tick each point that your answer made clearly and only once. Points here are this site's own. A real examiner may accept other valid points.

• Gain = proceeds 2,500,000 - cost 1,800,000 - disposal costs 30,000 = Rs. 670,000.
• The shares were acquired after 1 July 2024, and Sana is on the ATL, so the rate is 15 percent.
• Tax = 15% x 670,000 = Rs. 100,500.
• If she had not been on the ATL, the rates would be the individual slab rates, subject to a minimum of 15 percent.
• The costs of disposal are deducted in arriving at the gain.

Marks counted: 0 of 5

Tick each point that your answer made clearly and only once. Points here are this site's own. A real examiner may accept other valid points.

• Gain = 8,000,000 - 5,000,000 - 100,000 = Rs. 2,900,000.
• The plot was acquired before 30 June 2024, so the holding period table for properties acquired on or before that date applies.
• The holding period from 1 September 2021 to 15 November 2026 is more than five years but not more than six years.
• For an open plot, the rate for that holding period is 2.5 percent.
• Tax = 2.5% x 2,900,000 = Rs. 72,500.
• The longer the holding period, the lower the rate, and it falls to 0 percent after six years for an open plot.

Marks counted: 0 of 6

Tick each point that your answer made clearly and only once. Points here are this site's own. A real examiner may accept other valid points.

• Output tax = 18% x Rs. 50,000,000 = Rs. 9,000,000.
• Input tax can be deducted only on purchases used for the business, so the Rs. 4,000,000 for private use is excluded.
• Input tax = 18% x (30,000,000 - 4,000,000) = Rs. 4,680,000.
• Sales tax payable = Rs. 9,000,000 - Rs. 4,680,000 = Rs. 4,320,000.
• The return and payment must be made by the due date, and late payment can lead to default surcharge and penalties.
• The input tax on the private goods is not a business cost and cannot be reclaimed, so Sana bears it.

Marks counted: 0 of 6

Tick each point that your answer made clearly and only once. Points here are this site's own. A real examiner may accept other valid points.

• Sales tax is charged on supplies, and the business collects it from the customer and pays it to the tax authority.
• The economic burden falls on the final consumer, who cannot reclaim the tax, and not on the business.
• Income tax is a direct tax charged on the income or gain of the person who pays it, so the burden falls on the taxpayer.

Marks counted: 0 of 3